Morguard REIT's Q3 2011 Consolidated Financial Statements and
Management's Discussion and Analysis along with its 2010 Annual Report
are available on Morguard REIT's website at www.morguardreit.com and have been filed with SEDAR at www.sedar.com.

HIGHLIGHTS

Net operating income for Q3 2011, increased to $32.9 million from $31.2
million for the same period in 2010.

Net income for Q3 2011 totalled $45.3 million or $0.79 per-unit (basic)
and $0.74 per-unit (diluted) compared to $60.8 million or $1.07
per-unit (basic) and $0.97 per-unit (diluted) for the same period in
2010. In Q3 2011, net income included $26.3 million in fair value
gains on real estate properties compared with $43.3 million in fair
value gains on real estate properties included in net income in Q3
2010.

Funds from operations ("FFO") increased to $19.4 million or $0.34
per-unit (basic) and $0.33 per-unit (diluted) compared to $17.9 million
or $0.32 per-unit (basic) and $0.30 per-unit (diluted) for the same
period in 2010.

Overall portfolio occupancy levels were at 95%.

Net Income

(In thousands of dollars, except per-unit amounts)For the three months ended September 30,

2011

2010

Revenue from real estate properties

$ 57,983

$ 55,229

Net operating income

32,862

31,228

Income before fair value changes on real estate properties

19,001

17,576

Fair value gains on real estate properties

26,269

43,256

Net income for the period

$ 45,270

$ 60,832

Net income per-unit

Basic

$ 0.79

$ 1.07

Diluted

$ 0.74

$ 0.97

Funds From Operations

The real estate industry has adopted a measure of FFO to supplement net
income as an operating performance measurement. The Trust's
calculation of FFO is consistent with the definition provided by the
Real Property Association of Canada ("REALPac").

FFO is defined as net income adjusted for fair value gains or losses on
real estate properties and accretion of convertible debentures. FFO
per-unit is calculated by dividing FFO attributable to unitholders by
the weighted average number of units outstanding for the period.

FFO was calculated as follows:

(In thousands of dollars, except per-unit amounts)For the three months ended September 30,

2011

2010

Net income for the period

$45,270

$ 60,832

Add/(deduct) items not affecting cash:

Accretion of convertible debentures

367

332

Fair value gains on real estate properties

(26,269)

(43,256)

Funds from operations

$19,368

$ 17,908

Funds from operations per-unit

Basic

$ 0.34

$ 0.32

Diluted

$ 0.33

$ 0.30

Readers are cautioned that although the terms "Net Operating Income" and
"Funds from Operations" are commonly used to measure, compare and
explain the operating and financial performance of Canadian real estate
investment trusts and such terms are defined in the Management's
Discussion and Analysis, such terms are not recognized terms under
IFRS. Such terms do not necessarily have a standardized meaning and
may not be comparable to similarly titled measures presented by the
other publicly traded entities.

Morguard is a closed-end real estate investment trust, which owns a
diversified portfolio of 51 retail, office, and mixed-use properties in
Canada with a book value of $2.0 billion and approximately 8.3 million
square feet of leasable space. For more information, visit the Trust's
website at www.morguardreit.com.